TSX:TOU

Stock Analysis Report

Tourmaline Oil

Executive Summary

Tourmaline Oil Corp., together with its subsidiaries, engages in the acquisition, exploration, development, and production of oil and natural gas properties in the Western Canadian Sedimentary Basin.

Snowflake

Fundamentals

Undervalued with acceptable track record.

Share Price & News

How has Tourmaline Oil's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

11.7%

TOU

0.6%

CA Oil and Gas

0.2%

CA Market


1 Year Return

-38.6%

TOU

-12.0%

CA Oil and Gas

1.2%

CA Market

Return vs Industry: TOU underperformed the Canadian Oil and Gas industry which returned -12% over the past year.

Return vs Market: TOU underperformed the Canadian Market which returned 1.2% over the past year.


Shareholder returns

TOUIndustryMarket
7 Day11.7%0.6%0.2%
30 Day-18.2%-6.4%-2.5%
90 Day-30.4%-3.9%-1.5%
1 Year-37.0%-38.6%-8.1%-12.0%4.7%1.2%
3 Year-65.8%-67.1%-16.3%-24.9%14.0%3.8%
5 Year-70.9%-72.1%-21.8%-33.6%26.4%8.1%

Price Volatility Vs. Market

How volatile is Tourmaline Oil's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tourmaline Oil undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TOU (CA$11.97) is trading below our estimate of fair value (CA$34.21)

Significantly Undervalued: TOU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TOU is good value based on its PE Ratio (6.7x) compared to the Oil and Gas industry average (8.2x).

PE vs Market: TOU is good value based on its PE Ratio (6.7x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: TOU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TOU is good value based on its PB Ratio (0.4x) compared to the CA Oil and Gas industry average (0.6x).


Next Steps

Future Growth

How is Tourmaline Oil forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-103.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOU's earnings are forecast to decline over the next 3 years (-103% per year).

Earnings vs Market: TOU's earnings are forecast to decline over the next 3 years (-103% per year).

High Growth Earnings: TOU's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TOU's revenue (15.7% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: TOU's revenue (15.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if TOU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tourmaline Oil performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TOU's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: TOU's earnings growth over the past year (66.3%) exceeds its 5-year average (9% per year).

Earnings vs Industry: TOU earnings growth over the past year (66.3%) exceeded the Oil and Gas industry 62.2%.


Return on Equity

High ROE: TOU's Return on Equity (6.3%) is considered low.


Return on Assets

ROA vs Industry: TOU's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: TOU's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Tourmaline Oil's financial position?


Financial Position Analysis

Short Term Liabilities: TOU's short term assets (CA$206.9M) do not cover its short term liabilities (CA$366.4M)

Long Term Liabilities: TOU's short term assets (206.9M) do not cover its long term liabilities (2.7B)


Debt to Equity History and Analysis

Debt Level: TOU's debt to equity ratio (20.1%) is considered satisfactory

Reducing Debt: TOU's debt to equity ratio has increased from 17.4% to 20.1% over the past 5 years.

Debt Coverage: TOU's debt is well covered by operating cash flow (85%).

Interest Coverage: TOU's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet

Inventory Level: TOU has a high level of physical assets or inventory.

Debt Coverage by Assets: TOU's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Tourmaline Oil's current dividend yield, its reliability and sustainability?

4.01%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%2.0%markettop25%5.9%industryaverage4.9%forecastin3Years3.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TOU's dividend (4.01%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: TOU's dividend (4.01%) is low compared to the top 25% of dividend payers in the Canadian market (5.94%).

Stable Dividend: Whilst dividend payments have been stable, TOU has been paying a dividend for less than 10 years.

Growing Dividend: TOU's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.4%), TOU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Tourmaline Oil's salary, the management and board of directors tenure and is there insider trading?

9.9yrs

Average management tenure


CEO

Mike Rose (61yo)

11.2yrs

Tenure

CA$3,152,198

Compensation

Mr. Michael L. Rose, also known as Mike, P.Geol., founded Tourmaline Oil Corp. in September 2008 and has been its Chief Executive Officer and President since August 2008. Mr. Rose serves as Chief Executive ...


CEO Compensation Analysis

Compensation vs. Market: Mike's total compensation ($USD2.39M) is about average for companies of similar size in the Canadian market ($USD2.91M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.9yrs

Average Tenure

Experienced Management: TOU's management team is seasoned and experienced (9.9 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

62yo

Average Age

Experienced Board: TOU's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

Insider Buying: TOU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$29,97327 Aug 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,500
Max PriceCA$11.99
BuyCA$61,80926 Aug 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$12.36
BuyCA$32,50014 Aug 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,500
Max PriceCA$13.00
BuyCA$94,98414 Aug 19
Allan Bush
EntityIndividual
Role
Chief Operating Officer
VP of Operations & COO
Shares7,500
Max PriceCA$12.66
BuyCA$67,70312 Aug 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$13.54
BuyCA$14,96912 Aug 19
Jill Angevine
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,080
Max PriceCA$13.86
BuyCA$47,60012 Aug 19
Andrew MacDonald
EntityIndividual
Role
Lead Director
Lead Director
Shares3,500
Max PriceCA$13.60
BuyCA$49,48509 Aug 19
John Elick
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceCA$14.14
BuyCA$26,48308 Aug 19
Jill Angevine
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,920
Max PriceCA$13.79
BuyCA$139,77607 Aug 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares10,000
Max PriceCA$13.98
BuyCA$69,00007 Aug 19
Brian Robinson
EntityIndividual
Role
Member of the Board of Directors
VP of Finance
Shares5,000
Max PriceCA$13.80
BuyCA$34,55007 Aug 19
William Kirker
EntityIndividual
Shares2,500
Max PriceCA$13.82
BuyCA$292,58806 Aug 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares20,000
Max PriceCA$14.63
BuyCA$94,40510 Jul 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,860
Max PriceCA$16.11
BuyCA$80,63802 Jul 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$16.31
BuyCA$42,00028 Jun 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,500
Max PriceCA$16.80
BuyCA$40,37812 Jun 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,500
Max PriceCA$16.15
BuyCA$41,49207 Jun 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,500
Max PriceCA$16.60
BuyCA$128,50805 Jun 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares7,500
Max PriceCA$17.30
BuyCA$85,95003 Jun 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$17.19
BuyCA$26,00327 May 19
Lucy Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,467
Max PriceCA$17.73
BuyCA$97,77713 May 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$19.56
BuyCA$107,69401 Apr 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,230
Max PriceCA$20.60
BuyCA$5,71801 Apr 19
Earl McKinnon
EntityIndividual
Shares274
Max PriceCA$20.87
BuyCA$51,73231 Mar 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,500
Max PriceCA$20.69
BuyCA$52,48720 Mar 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,500
Max PriceCA$20.99
BuyCA$100,75008 Mar 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$20.15
BuyCA$89,20301 Feb 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$17.88
BuyCA$44,79431 Jan 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,500
Max PriceCA$17.92
BuyCA$93,75022 Jan 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$18.75
BuyCA$76,41221 Jan 19
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares3,990
Max PriceCA$19.15
BuyCA$99,72003 Jan 19
Allan Bush
EntityIndividual
Role
Chief Operating Officer
VP of Operations & COO
Shares6,000
Max PriceCA$16.62
BuyCA$80,77226 Dec 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$16.15
BuyCA$244,71817 Dec 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares15,000
Max PriceCA$16.50
BuyCA$169,00014 Dec 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares10,000
Max PriceCA$16.90
SellCA$26,14514 Dec 18
John Elick
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceCA$17.43
BuyCA$85,31011 Dec 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$17.06
BuyCA$35,35806 Dec 18
William Kirker
EntityIndividual
Shares2,000
Max PriceCA$17.68
BuyCA$88,74406 Dec 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$17.75
BuyCA$34,80006 Dec 18
Ronald Wigham
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$17.40
BuyCA$73,60230 Nov 18
Jill Angevine
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceCA$18.40
BuyCA$178,35030 Nov 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares10,000
Max PriceCA$17.84
BuyCA$45,09529 Nov 18
William Kirker
EntityIndividual
Shares2,500
Max PriceCA$18.04
BuyCA$90,87728 Nov 18
Brian Robinson
EntityIndividual
Role
Member of the Board of Directors
VP of Finance
Shares5,000
Max PriceCA$18.18
BuyCA$180,70728 Nov 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares10,000
Max PriceCA$18.10
BuyCA$139,47527 Nov 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares7,500
Max PriceCA$18.68
BuyCA$98,47523 Nov 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$19.69
BuyCA$48,84019 Nov 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,500
Max PriceCA$19.54
BuyCA$48,76915 Nov 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares2,500
Max PriceCA$19.51
BuyCA$95,12113 Nov 18
Brian Robinson
EntityIndividual
Role
Member of the Board of Directors
VP of Finance
Shares5,000
Max PriceCA$19.02
BuyCA$98,05012 Nov 18
William Kirker
EntityIndividual
Shares5,000
Max PriceCA$19.61
BuyCA$316,16012 Nov 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares16,400
Max PriceCA$19.36
BuyCA$96,10423 Oct 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$19.22
BuyCA$98,00018 Oct 18
Michael Rose
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceCA$19.60

Ownership Breakdown


Management Team

  • Mike Rose (61yo)

    Chairman

    • Tenure: 11.2yrs
    • Compensation: CA$3.15m
  • Brian Robinson (62yo)

    VP of Finance

    • Tenure: 11.2yrs
    • Compensation: CA$1.36m
  • Sarah Tait

    Controller

    • Tenure: 4.1yrs
  • William Kirker

    Secretary & General Counsel

    • Tenure: 11.2yrs
  • Ron Hill

    Vice President of Exploration

    • Tenure: 9.9yrs
    • Compensation: CA$663.49k
  • Al Bush

    VP of Operations & COO

    • Tenure: 5.5yrs
    • Compensation: CA$977.65k
  • Sherra Aspin

    Vice President of Marketing

    • Tenure: 1.1yrs
    • Compensation: CA$723.15k

Board Members

  • Ron Wigham (62yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: CA$125.70k
  • Lee Allan Baker (63yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: CA$125.70k
  • Mike Rose (61yo)

    Chairman

    • Tenure: 11.2yrs
    • Compensation: CA$3.15m
  • Brian Robinson (62yo)

    VP of Finance

    • Tenure: 11.2yrs
    • Compensation: CA$1.36m
  • John Elick (76yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: CA$125.70k
  • Jill Angevine (51yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: CA$125.70k
  • Bill Armstrong (59yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: CA$125.70k
  • Andrew MacDonald (59yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: CA$125.70k
  • Lucy Miller (67yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: CA$125.70k

Company Information

Tourmaline Oil Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tourmaline Oil Corp.
  • Ticker: TOU
  • Exchange: TSX
  • Founded: 2008
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$3.256b
  • Shares outstanding: 272.05m
  • Website: https://www.tourmalineoil.com

Number of Employees


Location

  • Tourmaline Oil Corp.
  • 250 - 6th Avenue SW
  • Suite 3700
  • Calgary
  • Alberta
  • T2P 3H7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TOUTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2010
TRML.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2010
08TDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2010

Biography

Tourmaline Oil Corp., together with its subsidiaries, engages in the acquisition, exploration, development, and production of oil and natural gas properties in the Western Canadian Sedimentary Basin. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:06
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.